Alternative Dispute Resolution is to mean any form of dispute resolution which is not litigation.

It is based on non-confrotation and meetings of minds.

The advantages of ADR are :-

1) Speed and Cost effective - it is significantly cheaper than both arbitration and litigation because of its enhanced speed. The parties do have to pay for the third party's services but tihis will normally be significantly less than the cost for the time that for eg. the individual's lawyer would spend in preparing and presenting a case. The client also save time where less document preparation is necessary.

2) Flexibility - the parties can choose one of several form of ADR available to them and they do not have to comply with any statutes or rules of court in doing so. Nor are there any case law precedent to limit the decision.

3) Preserving Business Relationship - like arbitration, ADR has the benefit of being heard in private, It is therefore particularly useful where the parties wish to continue with their business relationship after the dispute has been resolved. It is often much easier for them to do this when they have chosen a non-confrontational method of solving their particular problem.

4) Independent Mediator- the mediator who is wholly unconnected with the dispute, is able to support settlement terms which the parties would perhaps be too subjective to envisage for themselves, but would be willing to accept when proposed by an independent third party.

Learn more about this author, Mashayu Mohd Rahim.
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